The Louisiana Senate Tuesday (May 20) approved the House-amended version of legislation restricting so-called "legacy lawsuits" filed against oil and gas companies to get them to clean up oilfield waste pits and restore damaged property or pay damages.

Senate Bill 667, by Sen. Robert Adley, R-Benton, would require state courts to halt their actions involving such lawsuits if one of the defendant parties makes a limited admission of guilt, which triggers a process in which the defendant can recommend an environmental cleanup plan to the state Department of Natural Resources. The delay would stay in place until DNR completed its review and made recommendations on a cleanup plan.

The changes also require courts to presume that a DNR-approved cleanup plan is the most feasible solution for environmental damage caused by oil and gas exploration and production operations, unless evidence can be presented in court proving otherwise.

The legislation also allows recovery of reasonable attorney fees and court costs by defendants who are dismissed from such suits if they go to court to prove they are not at fault within 60 days of the suit being filed.

A House amendment closed what opponents called a loophole in Adley's bill that would allow oil and gas companies to avoid paying for damages required under state property laws since the early 1800s. The amendment added language saying that damages can be awarded for violation of "implied lease obligations arising by operation of law."

Adley argued Tuesday on the Senate floor that the House amendment actually expands the ability of landowners to collect damages beyond those that would have been guaranteed by lease contracts or state regulations under the existing law governing legacy suits.

His comments came in response to a move Tuesday by Sen. Blade Morrish, R-Jennings, to strip House amendments from the bill and to send it to a House-Senate conference committee. Morrish's motion was defeated and the bill was passed, both by 27-12 votes.

Morrish objected to the House amendments because they stripped his language from the bill that would have allowed landowners filing suit by March 10 to be heard in court under the existing law. The changes allow only lawsuits set for trial by May 15 to be considered under the old law.

Morrish said the change will subject dozens of landowners who have filed suit but have not been issued trial dates to the new law. He said in Cameron Parish, where many of the suits have been filed, there are only about 4,200 residents eligible to serve on juries, and only one judge, making the scheduling of trials difficult. A similar situation exists in Jefferson Davis Parish, where other legacy suits have been filed, he said.

Morrish also challenged Adley's contention that the legislation is a compromise between landowners and the oil and gas industry, pointing out that many of those who have filed lawsuits were not asked to participate in negotiations on the bill.

Those negotiations included representatives of the Louisiana Landowners Association and the Louisiana Forestry Association, which critics of the bill say include oil and gas companies as some of their most powerful members, along with officials from organizations representing energy, chemical and other big businesses. Also participating was Baton Rouge attorney Jimmy Fairchild, who is the former general counsel to Gov. Jindal. The legislation has been supported during the session by Jindal.

Adley said Tuesday that during the negotiations, he and Rep. Bret Allain, R-Franklin, represented small landowners who are their constituents. Adlley is the co-owner of Adley Consultants LLC, and is the former owner of Pelican Gas Management Inc.

Sen. Conrad Appel, R-Metairie, questioning Adley during the floor debate on the bill, said he'd been informed by Jefferson Parish officials that the parish still opposed the legislation because officials fear it will affect existing or future environmental damage lawsuits filed against oil and gas companies. The parish filed seven suits against a number of companies in November. Plaquemines Parish filed 21 lawsuits at the same time.

Adley, however, said the existing suits do not cite the existing legacy lawsuit law in allegations against the energy companies. Actually, the suits contend the oil and gas companies violated a variety of state laws, but largely cite provisions of the state's Coastal Zone Management Act in demanding the companies clean up or restore damaged property.